Farley Corporation owns 70 percent of Snowball Enterprises stock. On January 1, 20X1, Farley sold $1.03 million par value, 10 percent (paid semiannually), 20-year, first mortgage bonds to Kling Corporation at 97. On January 1, 20X8, Snowball purchased $309,000 par value of the Farley bonds directly from Kling for $305,880.

Required:

Prepare the consolidation entry needed at December 31, 20X8, to remove the effects of the intercorporate bond ownership in preparing consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your market rate of interest to 3 decimals. For example, .0547523 should be rounded to 5.475%.)

Entry

Bonds payable 309,000

Interest income ?

Loss on constructive bond retirement ?

Investment in Farley Corporation bonds ?

Interest expense ?

Discount on bonds payable ?